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This $10k ASIC miner has 1TH/s and by this hashing calculator (I know they're not THAT precise but...) it'll generate like $63.23 per month? Why would anyone invest in this?
How is mining profitable if a $10.000 ASIC will generate like $63.23 per month?
Answers
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That particular miner is way overpriced. Nobody should buy it at that price. The seller either listed an incorrect price, or is very confused about the current market for mining hardware, or is hoping to find a customer who is a sucker.
For comparison, the Antminer S5+ has a (claimed) hash rate about 7x higher and costs about 1/4 as much, making it about 28 times more economical.
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They wouldn’t. You just have to do the maths, which you have done. The tricky part is trying to figure out how fast you can recoup your investment before you make profit. Generally, it’s not a linear relationship.
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In my opinion investing in a miner at present times is not profitable at all. You will be better off investing that amount of money buying bitcoins, since you will get more bitcoins that what you will end up mining.
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The exchange rate makes the equation volatile and unknown as well.
If you're bullish, like many are, mining now will be as valuable as it was for the first few people who were mining with their CPUs in the beginning.
EDIT: If the exchange rate rices, then your revenue per month in USD increases as well.
Please reply to the specific question and don’t revert to commonplaces in answer posts. Besides, even when you are bullish about Bitcoin, buying bitcoins is a better investment in the majority of the scenarios. – Murch – 2016-01-10T09:54:46.777
How would answering a question about the exchange rate and mining profitability be unrelated? – Blake Miles – 2016-01-11T01:16:45.687
I didn’t say unrelated but trivial. "Bitcoin’s price is volatile. If you think Bitcoin will succeed, mining is a good investment." What insight does that give about why this severely overpriced miner would be a good investment? Your edit helped connect your statement to the question but my other interjection remains: When you expect the Bitcoin price to rise and make your miner profitable: Why not buy a more profitable miner in the first place? Or directly buy bitcoins? They’ll be profitable immediately as soon as the price rises, without waiting for a ROI. – Murch – 2016-01-11T08:12:43.710
2That's 10 USD per GH/s. Find a miner for below 0.40 USD per GH/s, otherwise you are paying too much. This miner should cost less than 400 USD. – Dr.Haribo – 2016-01-07T21:53:31.410
I bought two ASIC miners @ $300 and $200 used. A new one would only costs around $1000. Where did you get the $10,000 marked from? – simonpeter35 – 2016-01-09T23:17:11.057
In general, to determine the profitability of the mining market you should look at the best offers for hardware, not just a random offer. I could offer you the same ASIC for 1 million dollars, it wouldn't make mining any less attractive. Of course, this simple principle generalizes to more than just mining. – Meni Rosenfeld – 2016-01-10T21:13:14.460